SUPPLY CHAIN MANAGEMENT
Introduction to SCM Class-1
Running a profitable business ain’t easy!
How to make money on bottled water? And on selling Fried chicken/beef burger! If that is easy, how about fighting a war.
Wars are won/ lost by disrupting enemy supply lines Deliver 4” shells with 6” guns and you’ll surrender.
Video Reference: https://www.youtube.com/watch?v=Mi1QBxVjZAw
The video film (https://www.youtube.com/watch?v=Mi1QBxVjZAw) we have just seen portrayed an example of what is involved in running a simple bottled water business. Through that simple example of a ‘super-simple’ product we begin to see that the companies face challenges when they buy things, make things, move things, sell things and service things. The businesses need to give their customers, the product they want, when they want, as often as they want for a reasonable price while still managing to make a profit. Whose job it is make sure that all of these things happen flawlessly, with minimal effort and of course at minimum cost…. Of Supply Chain Manager! The Supply Chain Manager needs to be able to do all of these things. We can extend this example to a service supply chain like the hotel example we saw in the video film. When you buy a burger from McDonald or a Zinger from KFC, have you thought where all of the ingredients came from that produced your sandwich? Depending on the restaurant’s location, McDonald’s and KFC source their ingredients from both local and global suppliers. The challenge is to ensure that all restaurants in their network have enough ingredients to meet customer demand. This requires planning, implementing, and controlling the efficient, effective flow and storage of goods and services to deliver the burger to you. If this still seems easy, think of the effort that goes into running an organization such as an army. An American General was asked to define the logistics function. The definition given was “The science of planning and carrying out the...